Food group Kerry has made an offer for Newmarket Co-operative Creameries in a deal that values the company at more than €30 million.
Kerry said it would pay €421 per share for the Cork-based business; combined with debt, that brings the value of the deal to €33 million.
More than two thirds of Newmarket's shareholders must approve the deal, with the deadline set for September 10th. The sale will also require regulatory approval.
Newmarket Creameries is a major supplier of cheese to Kerry Group's branded cheese business, and currently has an annual manufacturing capacity of more than 35,000 tonnes.
"The group has a long-standing business relationship with Newmarket Creameries and high regard for Newmarket cheese-making competency," said Kerry Group chief executive Stan McCarthy.
"Combining Kerry and Newmarket represents a positive growth and business development opportunity in the interest of all stakeholders in both companies."
Shares in Kerry Group rose 2.4 per cent to €25.14 on the Dublin market this afternoon.
